Circle’s EURC Stablecoin Hits Record Supply as Crypto Investors Seek Dollar Diversification
Circle’s euro-backed stablecoin, EURC, surged to a record supply as mounting U.S. trade tensions and a weakening dollar likely fuel demand for euro-denominated digital assets. EURC’s supply grew 43% over the past month to 217 million tokens worth $246 million, ranking above Paxos’ Global Dollar (USDG) and below Ripple’s RLUSD by market capitalization, RWA.xyz data shows. Most of the EURC tokens circulate on the Ethereum network, up 35% in a month to 112 million, while Solana saw the fastest, 75% expansion to 70 million tokens. Base, Coinbase’s Ethereum layer-2, also saw a 30% growth to 30 million in EURC supply. The token also experienced an uptick in on-chain activity, with active addresses rising 66% to 22,000 and the monthly transfer volume surpassing $2.5 billion, up 47% in a month, per RWA.xyz. EURC supply across blockchains (RWA.xyz) EURC is currently the largest euro stablecoin on the market, but it lags far behind its dollar-denominated counterparts. Dollar-pegged stablecoins make up 99% of the rapidly growing stablecoin market, led by Circle’s $58 billion USDC and rival Tether’s $143 billion USDT token. The accelerating growth of EURC could be a sign of growing demand for diversification to euro-denominated digital assets, particularly as global investors navigate increasing economic uncertainties in the U.S. with the Trump administration wide-scale tariff rollout. The greenback weakened 9% against the euro since the start of the year. Xapo Bank, a Gibraltar-based Bitcoin-focused financial services firm, reported Monday a 50% increase in euro deposit volumes during the first quarter, outpacing the 20% rise in USDC stablecoin deposits. Meanwhile, deposits in USDT declined by over 13%. “This rapid increase in volume came amidst mounting concern about the future of U.S. dollar primacy and the threat of a U.S. recession as markets braced for Trump’s planned ‘Liberation Day’ in April,” the firm said in the report. Stablecoin swap volumes between foreign currency pairs on Ethereum-based decentralized exchanges also soared to multi-year highs last week, dominated by the EUR-U.S. dollar pair, Blockworks data showed. EURC also has likely benefited from Tether’s withdrawal of its euro-backed stablecoin (EURT) with E.U.-wide MiCA regulations going into effect this year, while a number of exchanges delisted USDT for E.U. users to comply with regulations, including Binance at the end of March.
Circle’s IPO Filing Tests Crypto Market Confidence After Trump’s Tariff Shock
After U.S. President Donald Trump’s reelection in November, optimism surged among crypto companies eyeing the public markets. Trump floated big promises: clearer rules for the industry and ambitions to make America the crypto capital of the world. For a moment, it looked like the floodgates might open. IPO pipelines buzzed with activity. Founders dreamed of ringing the opening bell. But beneath the surface, storm clouds were gathering. A bull market is the lifeblood of successful listings, and few foresaw just how rocky the road ahead would become. Circle didn’t wait for perfect conditions. After years of false starts and regulatory hangups, the stablecoin issuer finally filed its S-1 with the U.S. Securities and Exchange Commission (SEC) on Tuesday, taking a long-delayed step toward becoming a publicly traded company. The filing landed with a mix of energy and doubt. Some in the industry saw it as a bullish signal—another crypto heavyweight inching closer to the public markets. Others questioned the timing. Markets remain shaky, and Circle’s path to a successful debut is far from guaranteed. “I believe Circle will be able to price their IPO and raise capital, however it isn’t going to be easy,” said David Pakman, managing partner and head of venture investments at CoinFund. “Generally, companies going public would like to debut during strong equity markets.” Equities have been in a free fall since Trump announced so-called reciprocal tariffs on about 90 U.S. trade partners, including China and the European Union, deepening fears of a global recession. Both the S&P 500 and the Nasdaq have dipped 11% and 17% year-to-date, respectively, marking one of the worst quarters in recent years. As a result, cloud computing firm CloudWeave, which went public last month, saw a disappointing debut, even though the stock rebounded on the second day of trading as investor demand for artificial intelligence companies appears to be stronger than short-term anxiety in markets. Payments app Klarna said it paused its IPO plan earlier today. But Circle doesn’t just face broader market jitters as a potential threat to its IPO. Analysts have pointed out the company’s financials, which could make it difficult to attract investors. “While I personally have tremendous respect and appreciation for Circle and their leadership, their financials show the challenges they have faced with growth and the high cost of their distribution partnerships,” Pakman, who noted that he still believes long-term value of the company, said. Circle’s IPO filing revealed shrinking gross margins and high spending, which comes at a time when clearer stablecoin regulation could bring increased competition to the market. “Circle is currently being priced like a traditional crypto business — cyclical, interest rate-dependent, and not diversified enough. If Circle can evolve to look more like a payments network with high margins and strong moats, its valuation might reflect that,” Lorenzo Valente, a crypto analyst at ARK Invest, wrote in a post on X. Many aspects about the company’s structure seem to be in question, including how its revenue-sharing agreement will evolve, as well as the growth of Base, the blockchain created by Coinbase that uses Circle’s USDC, according to Valente. “One precaution Circle has taken is a lower valuation. But, still hurdles remain as the rollout and implementation of digital rails in the banking system will take time,” said Mark Connors, chief investment strategist at Risk Dimensions, a New York-based Bitcoin investment advisory. Circle’s rumored valuation of $4 billion to $6 billion, roughly 13 to 20 times its adjusted EBITDA, is in line with Coinbase and Block, and “not necessarily cheap, especially considering its recent drop in profitability,” Valente said. “We do like the prospect for the growth in US-backed stablecoins based on the growing commercial use, shift in U.S. the regulatory and legislative (GENIUS Act) winds and the U.S. Treasury’s incentive to find new buyers of its growing stack of U.S. T-Bills,” according to Connors. Over $6 trillion of Treasury bills will be rolled over this year, with additional issuance likely to fund the still-growing U.S. deficit. Despite market uncertainty about the remaining year, several other crypto natives are looking to fulfill their IPO dreams, including Kraken, Gemini, Blockchain.com, Bullish (the parent company of CoinDesk) and BitGo. Even more crypto firms are rumored to be in talks to go public as well. However, others will likely put their IPO plans on hold as they wait for regulatory clarity and better market conditions. Analysts at crypto M&A advisory firm Architect Partners expect the majority of IPOs to be filed in the second half of 2025 after written regulations and policies are clearly completed.
Stablecoins Supply Up By $20 Billion – The Key To Bitcoin’s Next Move?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing Strict editorial policy that focuses on accuracy, relevance, and impartiality Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Este artículo también está disponible en español. Early in 2025, there was a significant surge in the stablecoin market, with a $20 billion increase in total supply. With a 10% increase from January, the total supply now stands at almost $205 billion. The spike, according to data from Glassnode, comes after a dip in late 2024, when the supply of stablecoins fell from $187 billion to $185 billion. Related Reading Stablecoins See A Strong Rebound For trading cryptocurrencies, stablecoins—like USDT and USDC—often act as a reserve for investors expecting the right time to buy assets like Bitcoin. The most recent rise shows that investor interest has surged, especially in view of last year’s slow down. Since Jan 1, the aggregate #stablecoin supply has increased by $20.17B (+10.9%), now reaching more than $205B. For comparison, the December peak clocked in at $187B but the supply actually contracted in the last two weeks of 2024 and dropped to $185B by January 2025. pic.twitter.com/gQbdMEDisb — glassnode (@glassnode) March 13, 2025 Given the previous fall, this comeback is especially notable. For most of 2024 the market has been losing stablecoins; but, this trend has lately reversed. Although past patterns suggest that Bitcoin’s price may be impacted, it is unknown whether this increase will lead to a rise in purchases of cryptocurrencies. Bitcoin Investors Watching Closely A growing stablecoin supply is often seen as a bullish sign for Bitcoin. Historically, the price of Bitcoin has risen in line with the stablecoin count. The reasoning is simple: more stablecoins mean more potential capital just waiting to be entered into the market. Some analysts believe this fresh injection could push Bitcoin higher. However, not all stablecoins are used for trading. Many are held for remittances, payments, or as a hedge against inflation, especially in countries where local currencies are unstable. As of today, the market cap of cryptocurrencies stood at $2.65 trillion. Chart: TradingView Stablecoin Exchange Holdings Drop 21% While the total supply is rising, only 21% of stablecoins are currently sitting on exchanges. This is a significant drop from 2021, when over 50% of the supply was available for immediate trading, Glassnode disclosed. This shift suggests that while new coins are being issued, they are not all being deployed into crypto markets right away. Related Reading This could point to one of two possibilities: either stablecoins are being used more often outside of exchanges or investors are still waiting for the suitable moment. Should the latter prove right, the impact on Bitcoin could be less notable than expected. What This Means For Bitcoin’s Future The stablecoin market is currently experiencing a resurgence, which is generally a favorable development for the cryptocurrency sector. However, it is uncertain whether this will result in a short-term increase in the price of Bitcoin. Stablecoin utilization has fluctuated, and additional economic variables will contribute to this development. At the time of writing, Bitcoin was trading at 82,264, down 1.1% and 6.9% in the daily and weekly frames. Featured image from Warwick Business School, chart from TradingView